Sunday 30 September 2018

Interest Rates for Small Saving Schemes for October to December 2018


Interest Rates for Small Saving Schemes for October to December 2018

Government of India has announced the interest rate for Small Saving Schemes like NSC, PPF, SCSS (Senior Citizen Savings Scheme), KVP, Sukanya Samriddhi Account, Post Office RD Account and Post Office Time Deposit for the period October 2018 to December 2018 (Third Quarter of FY 2018-2019).




Interest Rates Schedule for Post Office Small Saving Schemes

Earlier Government used to notify Interest Rates for Post Office Small Saving Schemes once yearly. But now Government notifies Interest Rates for Post Office Small Saving Schemes every quarter. The quarterly interest rates for small saving schemes timetable given in the table below.
S. No.
Interest Rate would be effective for the quarter
Date on which it will be notified
1
1st Quarter (April to June)
15th March
2
2nd Quarter (July to September)
15th June
3
3rd Quarter (October to December)
15th September
4
4th Quarter (December to March)
15th December

Government notified the Interest Rates for Post Office Small Saving Schemes for the third quarter of financial year 2018-2019 (October 2018 to December 2018).




Interest Rates for Small Saving Schemes for the period October to December 2018

This time, the government has hiked interest rates for post office small saving schemes. Some of the interest rates are increased by 0.4%. The announcement about this was made by Ministry of Finance. For the detailed notification, please click here 

Interest Rates for Post Office Saving Schemes for October to December 2018

1. The Senior Citizens Saving Scheme (SCSS) would now offer the interest rate of 8.7%. At present, this is the highest interest rate offered on Post Office Saving Schemes.
2. Sukanya Samriddhi Account will offer the interest rate of 8.5% per annum.
3. National Savings Certificate (NSCwill now fetch an interest rate of 8% compounding annually.
4. Public Provident Fund (PPF) will also fetch an interest rate of 8% per annum.
5. Kisan Vikas Patra (KVP) will offer an interest rate of 7.7% and now mature in 112 months.
6. Post Office Monthly Income Account will now fetch an interest rate of 7.7% per annum.
7. Post Office Time Deposits of 1 to 5 years will offer an interest rate of 6.9% to 7.8% per annum.
The interest rate for Time Deposit of 1 Year is 6.9%
The interest rate for Time Deposit of 2 Years is 7%
For Time Deposit of 3 Years is 7.2%
Time Deposit of 5 Years is 7.8%
8. The five years RD Account will offer an interest rate of 7.3%.
9. The interest rate for Post Office Savings Account has been kept unchanged at 4%.


Interest Rates for Post Office Saving Schemes for October to December 2018

Scheme Name
Rate of Interest from 01/10/2018 to 31/12/2018
Rate of Interest from 01/07/2018 to 30/09/2018
Frequency of Compounding
Post Office Savings Account
4%
4%
Annually
Time Deposit 1 Year
6.9%
6.6%
Quarterly
Time Deposit 2 Years
7%
6.7%
Quarterly
Time Deposit 3 Years
7.2%
6.9%
Quarterly
Time Deposit 5 Years
7.8%
7.4%
Quarterly
Recurring Deposit 5 Years
7.3%
6.9%
Quarterly
Sukanya Samriddhi Account
8.5%
8.1%
Annually
Kisan Vikas Patra (KVP)
7.7%
7.3%
Annually
8%
7.6%
Annually
National Savings Certificate 5 Years
8%
7.6%
Annually
PO Monthly Income Account
7.7%
7.3%
Monthly and paid
Senior Citizens Savings Scheme
8.7%
8.3%
Quarterly and paid


Note that the Interest Rates for Post Office Saving Schemes like Post Office Recurring Deposit Account, Post Office Time Deposits, KVP, SCSS, National Savings Certificates and Post Office Monthly Income Account, are locked-in. The interest offered on these schemes on date of investment will remain same for the entire tenure on investment. The interest rates on PPF and and Sukanya Samriddhi Account are applicable as declared every quarter irrespective of the time of opening of the account.




With increase in interest rates on Post Office Saving Schemes by 0.3% to 0.4% by Ministry of Finance. The Post Office Saving Schemes now offer highest interest rates as compared to other saving schemes. You can consider investing in these schemes if your risk appetite is low.

Also read: Public Provident Fund (PPF ) - A popular saving scheme
Also read: National Savings Certificates (NSC)



Also read: SBI Recurring Deposit Account
Also read: Post Office Monthly Income Account

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